By Aaron Dykes
The Federal Reserve remains the 800-pound gorilla. Its moves are of enormous consequence to the economy, and their interests are at odds with those of ordinary Americans.
If people who’ve been thrown out of work, out of their homes and into bankruptcy understood what had been done, and by whom, they would have overthrown it practically overnight.
This insightful video discusses how the New York Federal Reserve is a corporation, largely owned by the top 10 banks – including many international banks – and works to increase the wealth of its shareholders at the expense of everyone else:
Secrets of the Federal Reserve: U.S. Economy, Finance and Wealth
The private control of this important central bank works through several channels, but centers around a handful of the top wealthy families in the ruling oligarchy – including the Rothschilds, Warburgs, Rockefellers, DuPonts and others. Direct ownership is bolstered through interlocking control between other Federal Reserve branches through board members and directors, as well as ties to family dynasty networks. The Federal Reserve is in turned steered by the agenda of the Bank for International Settlements, an institution which also has ties to ranking families of the banking houses.
Ron Paul: How the Fed Destroys Americans’ Standard of Living
“When the President signs this bill, the invisible government of the monetary power will be legalized….the worst legislative crime of the ages is perpetrated by this banking and currency bill.” –Charles A. Lindbergh, Sr. 191, opponent of the Federal Reserve
“Whoever controls the volume of money in any country is absolute master of all industry and commerce.” –Paul Warburg, drafter of the Federal Reserve Act
“Federal Reserve It is not federal, and it does not have any reserves.” –G. Edward Griffin on the Federal Reserve System
“If the American people ever allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all their property until their children will wake up homeless on the continent their fathers conquered.” –Thomas Jefferson was concise in his early warning to the American nation
“Permit me to issue and control the money of a nation and I care not who makes its laws.” –Mayer Amschel Rothschild
There is much to say about unfair control by the Federal Reserve, but for now, here are some of the criticisms that call for action:
The Federal Reserve System, known colloquially as “the Fed”, has faced various criticisms since its conception in 1913. The system was created as a third attempt at central banking in the United States. The Federal Reserve Act, which began the Fed, was a hotly debated issue in its own right.
Some economists, such as John Taylor, have asserted that the Fed was responsible, or at least partially responsible, for the United States housing bubble which occurred prior to the 2007 recession. They claim that the Fed kept interest rates too low following the 2001 recession, The housing bubble then led to the credit crunch. Then-Chairman Alan Greenspan disputes this interpretation. He points out that the Fed’s control over the long-term interest rates critics have in mind is only indirect. The Fed did raise the short term interest rate over which it has control (i.e. the federal funds rate), but the long term interest rate (which usually follows the former) did not increase.
The Federal Reserve’s role as a supervisor and regulator has been criticized as being ineffective. Former U.S. Senator Chris Dodd, then-chairman of the United States Senate Committee on Banking, Housing, and Urban Affairs, remarked about the Fed’s role in the present economic crisis, “We saw over the last number of years when they took on consumer protection responsibilities and the regulation of bank holding companies, it was an abysmal failure.”
In the 2010 midterm elections, the Tea Party movement, comprising conservatives, made the Federal Reserve a major point of attack; it was picked up by Republican candidates across the country. In Utah, GOP Senate candidate Mike Lee accused the Fed of trying to “monetize the debt” by printing money to buy government bonds. Fed officials have hotly denied that. GOP Senate candidate Ken Buck in Colorado said Congress should be “shining a light on the Federal Reserve” because it is too cozy with private interests. GOP Senate candidate Rand Paul in Kentucky, whose father Congressman Ron Paul has long attacked the Fed, argues that the Fed is hurting the economy by lowering the dollar and by its easy money policies that cause booms and busts.
One criticism of the Fed, typified by the non-mainstream Austrian School, is that the Federal Reserve’s control of interest rates is an unnecessary and counterproductive interference in the economy.
The individual Federal Reserve Banks “are the operating arms of the central banking system, and they combine both public and private elements in their makeup and organization.” Each bank has a nine member board of directors: three elected by the commercial banks in the Bank’s region, and six chosen—three each by the member banks and the Board of Governors–“to represent the public with due consideration to the interests of agriculture, commerce, industry, services, labor and consumers.” These regional banks are in turn controlled by the Federal Reserve Board, whose members are appointed by the President of the United States.
Another objection is the Fed’s lack of transparency. In particular, many believe that the public has a right to know what goes on in the Federal Open Market Committee (FOMC) meetings. (Wikipedia)
Humor: Who Owns the Federal Reserve?
Aaron Dykes is a co-founder of TruthstreamMedia.com. As a writer, researcher and video producer who has worked on numerous documentaries and investigative reports, he uses history as a guide to decode current events, uncover obscure agendas and contrast them with the dignity afforded individuals as recognized in documents like the Bill of Rights.